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OTCQB: HIIT Corporate Presentation August 2014

Hii technologies (HIIT) Investor Presentation

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Page 1: Hii technologies (HIIT) Investor Presentation

OTCQB: HIIT Corporate Presentation

August 2014

Page 2: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

Disclaimer This presentation and related commentary may contain "forward-

looking statements" within the meaning of Private Securities

Litigation Reform Act of 1995. Any statements as to matters that

are not of historic fact are forward-looking statements. These

forward-looking statements are based on HIIT's current

expectations, estimates and projections about HIIT, its industry,

its management's beliefs and certain assumptions made by

management, and include statements regarding future

operational and activity expectations, anticipated financial

performance in 2014 and beyond. No assurance can be given

that such expectations, estimates or projections will prove to have

been correct. Whenever possible, these "forward-looking

statements" are identified by, words such as "expects,"

"believes," "anticipates" and similar phrases. Readers and any

audience are cautioned that any such forward-looking statements

are not guarantees of future performance and are subject to

certain risks, uncertainties and assumptions that are difficult to

predict, including, but not limited to:

Risks that HIIT will be unable to achieve its financial, capital

expenditure and operational projections, including quarterly

projections of revenue and risks that HIIT's expectations

regarding future activity levels, customer demand, and pricing

stability may not materialize (whether for HIIT as a whole or for

geographic regions and/or business segments individually); risks

that fundamentals in the U. S. oil and gas markets may not yield

anticipated future growth in HIIT's businesses, worsen from the

recent market declines, and/or that HIIT could experience further

unexpected declines in activity and demand for its rental

equipment service, risks relating to HIIT's ability to implement

technological developments and enhancements; risks relating to

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compliance with environmental, health and safety laws and

regulations, as well as actions by governmental and regulatory

authorities; may not be able to reduce, and could even experience

increases in, the costs of labor, fuel, equipment and supplies

employed and used in HIIT's businesses; risks relating to changes in

the demand for or the price of oil and natural gas; risks that HIIT

may not be able to execute its capital expenditure program and/or

that any such capital expenditure investments, if made, will not

generate adequate returns; and other risks affecting HIIT's ability to

maintain or improve operations, including its ability to maintain

prices for services under market pricing pressures, weather risks,

and the impact of potential increases in general and administrative

expenses.

Because such statements involve risks and uncertainties, many of

which are outside of HIIT's control, HIIT's actual results and

performance may differ materially from the results expressed or

implied by such forward-looking statements. Given these risks and

uncertainties, readers are cautioned not to place undue reliance on

such forward-looking statements. Other important risk factors that

may affect HIIT's business, results of operations and financial

position are discussed in its most recently filed Annual Report on

Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current

Reports on Form 8-K and in other Securities and Exchange

Commission filings. Unless otherwise required by law, HIIT also

disclaims any obligation to update its view of any such risks or

uncertainties or to announce publicly the result of any revisions to

the forward-looking statements made here. However, readers should

review carefully reports and documents that HIIT files periodically

with the Securities and Exchange Commission.

Page 3: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

HII TECHNOLOGIES

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HII Technologies (HIIT) in Houston, Texas is a

frac water management services company

focused on providing total water management

for oilfield companies. HIIT also has supporting

service solutions with Safety and Power.

Services for horizontal drilling and

hydraulic fracing in the domestic U.S.

Page 4: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

$46.5 million

Market Cap

HII Technologies Inc. is publicly traded and quoted on

the OTCQB under the symbol HIIT

Market Cap, Price, Shares Outstanding and Average Volume: as of 8/15/14 Assets, Liabilities, and Equity numbers: as of 6/30/14

Current Price

In thousands

Balance Sheet

$0.87

Approximately 53.1 million

shares outstanding

Average volume (3m): 111,216

Management & Board own

approximately 23% of shares

Current Financial Snapshot

Stock Performance

Total Assets $20,573

Total Liabilities $16,567

Total Equity $4,006

Cash Position $1,728

Accounts Receivable $6,271

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

2013A 2014E

Revenue

$MM

$14.6

Recently added guidance

*Pro forma

$50-$53*

Page 5: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

AES Water Solutions (AES) AquaTex, and Hamilton Water Transfer

support hydro-fracturing through complete water management

services including water transfer, flow back and well testing, frac

water recycling, evaporation, and tank storage.

South Texas Power (STP) manages remote power needs in the

field for oil operators by supplying portable generated power

and lighting on a rental basis.

AES Safety Services (AES-SS) maintains compliance with

safety regulations for operators by providing certified safety

contractors, training and inspection.

HIIT has aggressively built a full suite of services, which are

essential to the activity of domestic E&P companies.

Key Products and Services

WATER

SAFETY

POWER

& Hamilton

Page 6: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

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9

10

11

12

13

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Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15

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As oil and gas activity continues to

expand, the demand for water used

for drilling and fracing is also growing.

Market Demand

U.S. Crude Oil and Liquid Fuels Production million barrels per day (MMBBL/D)

EIA Data as of May 6, 2014

Total Production

Production Forecast

Market Research firm Lux Research expects the frac water clean-up market

to grow to $9 Billion in 2020

By 2015, the Energy Information Administration

expects U.S. annual crude oil production to

exceed 2013 levels by 24%.

The 2015 forecast represents the highest annual

average level of production since 1972.

Page 7: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

Hamilton Water Transfer

Page 8: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

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Water Transfer

The Company's water division is hired by oilfield operators to provide above ground temporary pipe or lay flat hose infrastructure from a water source such as a river or a pond to a frac site – usually into tanks for frac companies to perform frac completion work. Our high volume pumps, turbo engines, no-leak hose, and connectors typically deliver 5-10 million gallons of water per frac job, and the average job requires 5 miles of hose.

We offer clients

significant savings over

the transportation costs

of trucking water

to frac sites.

Company

pumps Water Source

Frac

Hydraulic Fracing

Site

Our pipe,poly, flat hose

Revenue is earned by rentals charged by the foot and by the day,

plus ancillary rental fees on pumps, manifolds, and road crossings.

Page 9: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

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› Direct high temperature/high pressure

water into onsite tanks

› Separate gas and sand from the flow

back water

› Use flare stacks until lines and storage

tanks are in place

“Flow back” is water used to fracture

the shale that flows back to the

surface. The volume of recovery

may be between 20 and 40% of the initial volume injected.

We provide services to handle the

large volume of water that flows

back after a frac is completed.

Compny manifolds,

sand traps, &

gas separators

Tanks

Flow back

Services

Frac

Hydraulic Fracing

Site

Flow Back

Revenue is earned by equipment rentals charged on a day rate basis.

Page 10: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

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Recycling

› Removes 99% Total Suspended

Solids (TSS) above 5 microns

› Kills ~99% bacteria

Our technology addresses the need for

solids-free water for reuse: Trucking water means significant costs

and issues, plus friction between E&P

companies and the communities in

which they operate.

We address these issues by offering

mobile units which can clean up to

20,000 barrels of frac flow back per

day, on site.

The treated water can then be used

for additional hydraulic fracturing:

eliminating costs associated with

disposal and use of additional fresh

water.

Revenue is earned by clients paying per barrel of water recycled.

Page 11: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

HIIT has an exclusive for

Oklahoma and Texas with

Resource West and its

environmentally friendly

Landshark & Barracuda

wastewater evaporators.

Resource West was

formed in 2006, and has

evaporation equipment in

26 states and 11 countries.

Besides the economic benefits compared

to trucking/disposal, evaporation from

on-site water containment eliminates the

following concerns of local communities:

› Road deterioration

› Noise

› Pollution

› Property devaluation

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Evaporation:

Innovative Green Technology In Lieu of Expensive Trucking and Disposal

Revenue is earned by a per barrel charge.

Page 12: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

Other Water Service Offerings

Above ground on-site water storage tanks

› Can be assembled in under 7 hours

› Capacities of up to 53,000 barrels

of water

› Necessary when time on-site

doesn’t allow for pits

Top-hole solids control systems

and drilling fluids reprocessing

Water well drilling and open pit

design/procurement

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Revenue is earned based on day rates charged for rental equipment.

Page 13: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

On-site rapid accelerated pit evaporation

Solids removal Pit remediation

FRESH

WATER

WATER

TRANSFER

FRAC JOB

FLOW BACK SYSTEM

RECYCLE UNIT

ABOVE GROUND

WATER STORAGE

50+ miles aluminum pipe& lay flat non-

leak flat hose

Low profile road crossings

High performance water transfer pumps

On-site 2x2 manifolds

Gas separators packages

Sand traps

Flare stacks

Well testing equipment

Mobile & on-site

Water storage tanks

Quick set up & demobilization

Up to 53,000 barrel water capacity

Water transfer

Distribution manifolds

Recycle up to 20,000 barrels/day of water

Removes up to 99% total metals & TSS

99% Bacteria removals

EVAPORATION

Total Frac Water Management

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Page 14: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

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Complements HIIT existing

water division: › Geographic focus is eastern

Oklahoma covering the Woodford-Cana and Mississippian Lime formations

› Customer base is mostly different E&P operators

› Broad suite of service offerings including above-ground tanks, onsite high volume recycling and evaporation services

› Inventory of approx. 50 miles of aluminum pipe and lay flat hose as well as pumps, and other related equipment, which they deploy in a

services rental business model similar to AquaTex and AES Water Solutions.

› Oilfield operators contract with HIG to provide the necessary 5 to 10 M gallons of water needed for a single hydraulic fracturing completion or ‘frac’ of a well.

Hamilton Water Transfer Acquisition - August 2014 - $11.3 M in cash and stock

Hamilton provides frac water transfer services to oilfield services companies located in Oklahoma

and North Texas.

2012 2013

Revenues $8.5 M $12 M

EBITDA $2.3 M $4.3 M

Hamilton Financials

Page 15: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

AES

Page 16: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

AES Safety Services Overview

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AES Safety Services (AES-SS) provides on-site safety personnel on a contract basis to oilfield clients.

AES-SS revenues derived from:

› On-site safety engineers from drilling to completion

› Procedure monitoring and inspection

› Safety Training

› Developing customized HSE programs and safety plans for compliance

› Site remediation

Allows HIIT to cross-pollinate services with water and power divisions

Due to increasing regulatory requirements, many E&P

companies are relying on outsourced safety personnel.

Page 17: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

SOUTH TEXAS POWER

Page 18: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

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STP revenues are derived from

the rental of: › Diesel & natural gas generators

› Light towers

› Safety trailers

› Related power equipment

Portable onsite power generation

is critical to oilfield operations.

About STP

Portable power management

solutions company

Plus, STP offers 24/7 service contracts

Page 19: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

Corporate Summary

Page 21: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

61% of the U.S. land based

oil & natural gas drilling rigs are located in

Oklahoma and Texas

Source: BHI Rig Count 5/30/14

HIIT participates in the following unconventional tight oil and shale formation plays:

› Eagle Ford Shale › Permian Basin › Eaglebine › Mississippian Lime › Woodford

› Cline Shale › Granite Wash › Utica Shale and others

Activity Concentration

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Page 22: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

Barriers to

Entry

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Competitive

Advantages

› 80+ MSAs

› Typical range of 3-5 years

› Bundled service providers are preferred over single service companies

Master Service Agreements (MSAs)

› Management team has multiple decades of experience with customer base

› Reputation for quality equipment and service

› Local presence

Long-Term Relationships

› Exclusive relationship with Resource West

› Significant cost savings vs. trucking to disposal wells

Leading Evaporation Technology

› Substantial cost savings relative to sourcing fresh water

› Full spectrum of frac water services

Recycling Commercialization

Page 23: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

MATTHEW FLEMMING CEO & President of HII Technologies

› 20+ years industrial, oilfield and manufacturing experience

› Former Director and CFO at Hemiwedge Industries, Inc. (sold 2011)

› Former CEO of Faro – a specialty products company (successfully merged)

› Significant acquisition and capital raise experience

BRENT MULLINIKS President of AES Water Solutions and Director of HIIT

› Petroleum engineer with over 25 years of experience

› Former VP of Engineering at Reichmann Petroleum Corporation

› Former VP of Oil and Gas Operations for Devonian Resources, Inc.

› Involved with horizontal drilling and fracing in the Barnett

Shale since inception

BILLY COX Vice President AES Water Solutions

› More than 25 years experience in oilfield services, operations, field crew management, and business development

› Responsible for all aspects of water transfer used in hydo-fracing and AES field operations.

CHARLES DAVIS President AES Safety Services

› Ten years experience in all aspects of oil and gas safety services with Petrohawk and Talisman companies

› Experienced in managing safety engineering contractors in Ohio and West Virginia

CHAD CRADY President, South Texas Power

› 10+ years experience in oilfield portable power generation, construction and fabrication

› Experienced in servicing E&P, refinery, petrochemical and midstream sectors of the oil and gas industry

Management & Board

CHRIS GEORGE President of AquaTex

› 20 years experience in oilfield services and water management

MARK HAMILTON President of Hamilton Water Transfer

Page 24: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

2014 Guidance

• Pro forma 2014 revenue projected to be $50 to $53 million

• Pro Forma Adjusted EBITDA projected to be $8 to 10 million

Total shares outstanding (before any other acquisitions) are approximately

53.1 million post-close of the Hamilton acquisition; 64.3 million on a fully

diluted basis using the Treasury Method

Page 25: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

Focus on Critical

Oilfield Services

Investment Highlights

› Relatively inelastic market

› Full suite of frac water services

Leading Position

in Core Oilfield

Markets

› Increased activity forecasted

› Relationships with leading E&Ps

Proven Financial

Platform & Strategy

› Strong organic financial growth

› Successful acquisition integration

Innovative

Technology

› Exclusive relationship

› Economically prudent, ecologically desirable

Highly

Experienced

Management

Team

› CEO Matt Flemming and President Brent Mulliniks (50+ years combined experience)

› Proven track record of delivering shareholder value

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Page 26: Hii technologies (HIIT) Investor Presentation

HII Technologies, Inc.

Contact

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HII Technologies, Inc.

710 N. Post Oak Road, Suite 400

Houston, Texas 77024

713-821-3157

www.HIITinc.com

Investor Relations

MZ Group

Derek Gradwell - SVP, Natural Resources

512-270-6990

[email protected]

www.mzgroup.us